Basically what he means is, keep building / taking cities until you notice corruption / waste in your cities grows to ridiculous levels. There is no magic way to see a "number" related to waste / corruption for your empire, as it is figured on a city by city basis, but the F1 advisor screen will show you the numbers for each city.
I have been playing with mods so much for the past month, I can't even remember what the defaut settings are, all I remember is there was too much corruption for what I felt was realistic.
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